Hexagon Composites — Earnings Release 2015

Aug 13, 2015

Hexagon Composites ASA: Results for the second quarter and first half year 2015

Hexagon Composites ASA: Results for the second quarter and first half year 2015

In the second quarter 2015 Hexagon Composites generated NOK 413.9 (394.2)

million in operating income and made an operating profit before depreciation

(EBITDA) of NOK 37.4 (80.4) million. Operating profit (EBIT) was NOK 23.2 (62.8)

million and profit/loss before tax came to NOK -11.7 (56.7) million.

Operating results declined compared with the second quarter of 2014, impacted by

significantly lower sales volumes for Mobile Pipeline(TM) solutions. Results

were also impacted by the continued weak demand for light-duty vehicles in

Europe. These effects were somewhat mitigated by continued strong sales volumes

in the heavy-duty truck market in North America and transit bus markets in North

America and Europe which reached record levels for a consecutive quarter,

despite continued low oil prices. In addition, extraordinary costs related to

the bond buy-back and refinancing had a negative impact on other financial items

for the quarter. The full impact of savings in interest cost, following the

refinancing, will take effect in the following quarters.

The first half year of 2015 provided an operating income of NOK 815.5 (804.7)

million and had an operating profit before depreciation (EBITDA) of NOK 90.2

(165.6) million. The operating profit (EBIT) was NOK 62.7 (129.9) million and

profit before tax for continuing operations was NOK 41.6 (114.2) million.

Key developments:

* Soft Mobile Pipeline(TM) sales

* A consecutive record delivery performance in the quarter for Heavy-duty

vehicles

* Good capacity utilization in the Low-Pressure Cylinders segment, but

slightly down from second quarter 2014

* Continued positive overall impacts of USD currency developments compared to

same period last year.

Other important events in the half-year reported previously:

* Executed early redemption of NOK 300 million bond

* Secured financing facilities in a "club-deal" which extended financing

capacity from NOK 685 million to NOK 1 billion on an unsecured basis

* Dividend of NOK 0.62 per share was paid on 7th May 2015.

For more information:

Jon Erik Engeset, CEO, Hexagon Composites ASA

Telephone: +47 916 30 550 | jon.erik.engeset@hexagon.no

David Bandele, CFO, Hexagon Composites ASA

Telephone: +47 920 91 483 | david.bandele@hexagon.no

Solveig D Saether, Communication Manager, Hexagon Composites ASA

Telephone: +47 906 34 977 | solveig.saether@hexagon.no

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1945276]